Rising rents and landlord sales are contributing to a surge in homelessness, with landlords selling properties identified as the single biggest reason tenants need council support, according to new government data cited by Shelter.

Between April and June 2025, 6,700 households in the private rented sector in England sought council assistance after their landlord decided to sell — three times higher than the next most common reason for tenancy termination.

Overall, there are now 132,410 households living in temporary accommodation across England, up 7.6% year-on-year. Of these, a third (42,740 households) are housed outside their home area, an increase of 10% over the past year.

London remains the worst-affected region, with nearly 100,000 children living in temporary accommodation and almost half of all households accommodated outside their local area. Nationally, 2,420 children are homeless in temporary accommodation — the highest number in 21 years.

Mairi MacRae, Director of Campaigns and Policy at Shelter, said: “It’s utterly shameful that the number of children homeless could now fill a city the size of Oxford. Thousands face a long, grim winter stuck in temporary accommodation, including freezing bedsits and cramped B&Bs. Many are moved miles away from schools, extended families, and communities, worsening isolation and hardship.”

Shelter is calling on the government to unfreeze Local Housing Allowance (LHA) rates to help tenants cope with rising private rents and insists that building 90,000 social homes a year is essential to ending homelessness for good.

NRLA Calls for Investment, Not Punishment

The National Residential Landlords Association (NRLA) warns that penalising landlords with tax hikes would worsen the crisis.

“Every landlord who decides to sell a property leaves renters facing uncertainty about where they will next call home,” said Ben Beadle, Chief Executive of the NRLA.

“Renters need responsible landlords to remain in the market, providing the decent-quality homes that the vast majority already do. The Chancellor must avoid tax hikes which would only exacerbate the housing crisis for millions of renters.”

The debate highlights the delicate balance between protecting tenants, addressing homelessness, and maintaining long-term investment in the private rented sector.